Bitcoin’s slow momentum could persist into September due to the potential introduction of nearly $15 billion in additional selling pressure from Mt. Gox and the US government. This could flood the market with over $14.8 billion worth of Bitcoin, adding to the downward pressure on prices.
The US government currently holds more than 203,000 Bitcoin worth $12.1 billion, while Mt. Gox is set to distribute another 46,000 Bitcoin valued at over $2.7 billion. This influx of Bitcoin into the market could impact prices negatively.
Mount Gox is expected to distribute the $2.7 billion to Kraken by the end of 2024, but experts believe that these refunds are unlikely to have a significant effect on the market. According to a report by crypto analytics provider Kaiko, the selling pressure from Mount Gox redemptions is not expected to cause structural issues that would affect the broader market.
Creditors of Mount Gox have been waiting for over a decade to receive more than $9.4 billion worth of Bitcoin. With the value of Bitcoin rising by over 8,500% since then, many investors may choose to sell their holdings.
Despite the significant price increase of Bitcoin, creditors of Mount Gox have not rushed to sell their assets. After receiving almost $4 billion worth of BTC at the end of July, most creditors have refrained from selling, opting to hold onto their Bitcoin instead.
Bitcoin’s price remains below $60,000, having fallen by more than 10.7% on the monthly chart. To close August positively, Bitcoin needs to surpass the $64,300 mark. Analysts warn that the lack of liquidity in the market during the summer months may continue into September, making it challenging for Bitcoin to break through key resistance levels.
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